Two First Nations Added to Fiscal Act Schedule

Summary#

The Order Amending the Schedule to the First Nations Fiscal Management Act (SOR/2021-214) adds Innu Takuaikan Uashat mak Mani-utenam and Webequie First Nation to the schedule of the First Nations Fiscal Management Act. The order was registered on August 18, 2021 and published in the Canada Gazette, Part II on September 1, 2021; it came into force the day it was registered (August 18, 2021).

What it does#

• Adds the names Innu Takuaikan Uashat mak Mani-utenam and Webequie First Nation to the schedule of the First Nations Fiscal Management Act.
• Lets those First Nations choose to use tools and services available under the First Nations Fiscal Management Act, including:
  • setting up a property tax system under the Act (as an alternative to the authority under section 83 of the Indian Act);
  • seeking certification of their financial performance and financial management systems;
  • applying to access the First Nations bond financing regime, which can use local revenue streams as security.
• The change was made after requests by the band councils of those First Nations. It is optional — the communities must choose to use these powers and services.

Who's affected#

• Primarily members and governments of Innu Takuaikan Uashat mak Mani-utenam and Webequie First Nation.
• The national institutions that support the regime: the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.
• Local residents, homeowners, businesses, and community projects on those reserves could be affected if the First Nations decide to impose property taxes or use bond financing.

Why it matters#

• It gives the two First Nations new, optional tools to raise revenue and borrow for local infrastructure and economic projects.
• Those tools can help communities fund housing, water systems, roads, and other local priorities without relying only on federal transfers.
• Using the regime can also bring standardized financial rules and access to capital markets, which may make it easier to attract investment or finance larger projects.
• Nothing in the order forces these changes on the communities — it simply makes the options available.